Hello everybody, I hope you're all having a wonderful day. I wanted to take my opportunity today to relate a part of the Warren Buffett's famous investing rules to Splinterlands and the recent landscape of the economy.
Firstly, what do you think Warren meant when he said the title of this post? If you have ever paid attention to the futures markets you would know that they are highly volatile, like crypto. The tiniest piece of news can be the catalyst to a catastrophic topple of valuations in the stock market. This also happens in the Splinterlands world. For example, when General Sloan was revealed Lensmaster was at a similar price point as it is currently, in the $40 range. After General Sloan's +1 ranged was shown Lensmasters price went skyrocketing to $100! Small news can cause irrationally large sentiment changes in the futures market, as well as the Splinterlands market. If you have an appetite for risk, trading on the rumour before the news may be the game for you. But nonetheless, every investor gets caught up in the emotions of trading and the fear of missing out. We also sometimes try to chase our losses and end up in a bigger hole.
That was just a case of the upside of sentiment. We can sometimes observe negative sentiment having a much larger impact. For example, during April 2020 the world was in full lockdown for the most part. Covid was running rampant and the world was being as safe as possible. This meant that most people were staying home and working from home. Because of this nobody was really driving around using their cars. The result of this was that the price for oils on the future market actually dropped into the negatives. Meaning to sell oil, you would essentially have to pay to move your own. product. You might be thinking to yourself "But eirth, look how expensive gasoline is now!" That is actually the inverse effect to oil being at a negative value. The world closed down production to a point where we couldnt open the production back up to the oil levels we need because investors were too scared to put money into oil at those times.
I believe this all really applies to the Splinterlands climate we're facing right now. A lot of top players are leaving the game, the Maverick chat is depressing to read at times, the value of assets are falling at an alarming pace. But is it really all warranted?
What does Warren Buffett advise to do in a scenario like this? A couple of things. Stay rational and stick to your homework with your investments. It may be hard to do, but try and ignore the masses when it comes to your own money. There should only be one person in control of your financial decisions, and that is you. I implore you to find conviction in what you buy and stick to it. Do not waiver, do not get emotional. Before investing, set out a plan. Have a plan when to exit, and try to stick with it. If you're planning to take profits of a certain percentage or at a certain time, stick to it. The only scenario I ever change my exit strategy is if the gains are quicker or better than expected, and I advise you to do the same. The more concrete you can make your plan, the better. Trust yourself and your decisions, it is key to investing. Inversely, do not dig a deeper hole you do not feel comfortable digging.
Thank you to everybody who participated in my last giveaway and I would like to congratulate 
Today I will be giving away a rare twilight basilisk! All you have to do to participate is leave a comment down below! It is not required but I really do appreciate all of your upvotes, PIZZA, LUV, LOLZ, and all the other tip tokens! I'm a Dad that is the sole provider and I'm trying to make a bit more money from my cypto ventures to help out and every little bit really does help.
Thank you to everybody who took your time to read this post and I hope you all have a Splinterific day!
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